Financial Markets all the world undergone significant correction due to the corona virus scare. Markets corrected sharply during SAARS, Zica, Ebola.

Markets started worrying as the virus spreading to other countries. Restrictions imposed on movement of people and goods. It is affecting travel, tourism, supply chain thereby bringing temporary halt to economic activities. And it acted as a catalyst for correction particularly for American markets and other global markets.

It is a short term disturbance and the markets are adjusting to the same. There is expectation that by summer the virus should be in control. I pray it stops spreading and get controlled at the earliest.

And coming to the positives for India, Price of Oil has dropped has dropped sharply which is good for our country as we are import huge quantity. Many international companies may now likely try to reduce their dependence on china.

As we are in line with other countries in corporate Tax rate, Indian government need to use this opportunity to create alternative supply chain for global MNC’s by creating strong institutional framework for sanctity of contracts and enforcement of laws etc.

I end with few points from Warren Buffet recent letter to his shareholders on importance of equity investing once the medium term requirement of cash flows taken care of.

Anything can happen to stock prices tomorrow. Occasionally there will be major drops in the market, perhaps 50% magnitude or even greater. Don’t invest borrowed money and who can control his or her emotions in good and bad times.others? Beware!